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*Staying above 10293,prices heading 10400-450 & more *Today's Market Rhythm :- given below... Day :- Technically day trend is "Up", with price staying above DHEma 10329 level. Weekly :- Technically week trend is "Up",with price staying above WHEma 10377 level. Month :- Technically month trend is "Up", with price staying above MEma 10364 level. When trend in all T/Fs are aligned together, holding position for more rewarding and in conflict, keep booking partially. Trade Advice :- Traders can close all long position and intiate fresh Short position once nifty manages to break below 10225-20 levels till than hold their long positions & if traders wants, they can add more position or re-buy (which booked yesterday) at around 10300-295 level for bull rally. Note:- its my personal view.
NSE:NIFTYEducation
by psdasila
1
*Holding 10257 (DEma), prices head to 10361-10580 (W & M HEma)*Today's Market Rhythm :- given below... Day :- Technically day trend is "Up", with price staying above DHEma 10294 level. Weekly :- Technically week trend is "Sideways",with price stying below WHEma 10361 level. Month :- Technically month trend is "Sideways", with price staying below MHEma 10580 level. When trend in all T/Fs are aligned together, holding position for more rewarding and in conflict, keep booking partially. Trade Advice :- Traders can close all long position and intiate fresh Short position once nifty manages to break below 10230-25 levels till than hold their long positions & they can book profit in partially position @ 10370-75 levels. Today's Strategy :- "Buy on Dips" Note- its my personal view.
NSE:NIFTYEducation
by psdasila
1
Educational 21: Importance of Closing Price In the above chart, I have a drawn a closing price resistance line in blue indicating a highest candle close on the chart, now the price action needs to close above that previous resistance to indicate further upside movement in the stock therefore we need to wait for the daily price closing in order to determine and confirm the further movement. In this chart, the price action did go above the marked resistance level (in blue horizontal line) but failed to close above it which indicated selling pressure at higher levels and eventually if it failed to close above the resistance zone then it came down sharply. Therefore, a trader must wait for the closing of a candlestick in order to determine and confirm the big players further movement in the market. Lesson: Trade with the confirmation of closing price or candlesticks. Regards
BSE:RELCAPITALEducation
by NeeteshJain
4
How to Trade A Range and Potential BreakoutHello Traders, All of us want the price action to follow our direction of trade but that doesn't happen always. The price action has a natural tendency to move up and down; build ranges and develop patterns. Most of the ranges and patterns are like whipsaws and many traders stuck in these situations and lose money. The most effective ways to deal with such a price action is patience and a better strategy. When I say better strategy that means the one which keeps you ahead of the others. In this backdrop, I have tried to spot better entry points in case the price action builds a range after a nice up move and we are visualizing a potential breakout. Entry at these spots doesn't guarantee sure win but minimize our risk and increase the chances of reward. After an entry, stops can be placed below the range or below the prior swing low -- whichever suits the situation. Same strategy can be applied, in opposite direction, in case the overall trend is down and we visualize a potential breakdown after a range. Notes on the chart. Hit like for better educational publications in future. Comments are welcomed. Trade safe. Best Regards Bravetotrade
NSE:NIFTYEducation
by Bravetotrade
8
Weekly Educational Series - PART 2 ---------- Continued from Weekly Educational Series - PART 1 ; ---------- 3. Expectancy So, now we have got our risk reward ratio and winrate. We move on to calculate the expectancy of our trading strategy. The formula is, Expectancy = (Probability of Win * Average Win) – (Probability of Loss * Average Loss) So, in our scenario, where, Risk Reward Ratio = 2:1 Winrate = 60% we get, Probability of win = 60 % = 0.6 Average win = Reward = 3 Probability of loss = 40 % = 0.4 Average loss = Risk = 1 Putting these values in the formula, we get ; Expectancy = ( 0.6 * 3 ) - ( 0.4 * 1 ) = 1.8 - 0.4 = 1.4 Here, we get an expectancy of 1.4 , that is 1.4 is the average rupees you can expect to win per rupee at risk. {Example : you do 10 trades with 3:1 Risk Reward Ratio ; you win 60 % - earn 6 trades * 3 Rupees (18) you lose 40 % - lose 4 trades * 1 Rupee (4) you end up earning 14 Rupees even when you were right just 6 out of 10 times } This is a positive expectancy model, which we seek, to ensure that we will earn money in the long run. Professional traders aren't worried if their trade hits stop loss, because of this reason , that they know they will earn money ultimately. --------- NOTE : So, after learning all these concepts, what I want you to do is, from now on, pull out your charts and journal, see what works and what doesn't, set a specific strategy, determine the Risk Reward Ratio suitable to it, paper trade / real trade / past data - have a look and find out the winrate Calculate expectancy. What answers do you get ? Is it positive or negative ? How much can you expect to earn in the long run? -------------- Ok, so that was the first post, the essential basics of trading, and utmost requirement of a trading plan. I would like to hear from you all 3 things, 1. Whether you were able to understand and found it helpful ? 2. Whether you want more posts like these ? If yes, on what topics? 3. What does your expectancy come out to be ?
NSE:NIFTYEducation
by dravya
17
Weekly Educational Series - PART 1 For the benefit of other traders, I am starting a weekly educational series where i will be covering lots of topics related to trading which everyone should abide by. It will be in simple language and easy explanation so that everyone can understand. There will be further detailed explanation of nuances if required by the members. So, starting with the first post, BASICS OF TRADING | PART - 1 Technical analysis is a part of trading. It doesn't make money in itself, but how you actually use that analysis and then trade, is what makes money. Many traders believe the myth of timing, and hope that one day they will be perfect in analysis and start making money. But trading is not hope, it's math. We come here, to earn money, and how we do that consistently ? By using math. Let me explain you how. No matter what indicator you choose, what timeframe you trade in, you trade options, futures or commodities; basically, anything you do in trading, you should remember these 3 things which will help you be profitable in the long run. ---------- 1. Risk Reward Ratio : How much are you risking to get estimated reward ? Are you risking 5 Rupees to gain 15 Rupees ? Then your ratio would be 3:1 . ( Remember this is a R multiple and not rupees So, a 3:1 ratio can be any of these, risking 10 to get 30 risking 100 to get 300 risking 500 to get 1500 ) Easy ? Just calculate how much you want to risk for every reward you hope to get. Be it, 2:1 3:1 5:1 doesn't matter, according to your trading style, determine this. ---------- 2. Winrate : So, once you have decided, how are you going to trade, and fixed your risk reward ratio, then you take only those trades which fit the Risk Reward Ratio criteria. Then, do, at least 25-30 trades, on paper or for real, as suitable. Analyze your results. What percentage of the trades were winners and hit target ? and what percentage of the trades were losers and hit stoploss ? Assuming you followed the risk reward ratio criteria properly, let's say, you find out that, 18 out of 30 trades , you achieved your target ; and , 12 out of 30 trades, you hit your stop loss. This, gives us a 60% of winrate. (18/30) * 100 , that is, ( no. of winners/ total no. of trades) * 100 Once you have got the results of this, we move on to the third step. ---------- Continued on Part 2 . There's a limit on description length. I''ll link it below. Thanks.
NSE:NIFTYEducation
by dravya
4
Educational 08: Head N Shoulder & Elliott Waves RelationshipThis is an interesting educational post which I observed last week while analysing charts that were showing Head n Shoulder Patterns. I thought of relating it to the Elliott Waves Theory and found out some similarities in their pattern formation. I have displayed both the pattern formation and indicated WHEN & HOW TREND CHANGES once such patterns are formed. H&S is a major reversal pattern and it is similarly indicated in Elliott Waves while showing a complete wave cycle where impulsive and correctives waves are added. Key Similarities: 1. Left Shoulder of H&S pattern is compared to Wave 3 of EW 2. Head of H&S is compared with Wave 5 of EW 3. Left Shoulder is compared as Wave B of corrective Elliott Waves 4. Target of H&S is indicated as a completion of Zig-Zag Correction in Elliott Waves Theory This make easier to indicate patterns and provide extra confirmation with other technical patterns. This makes our convinction strong and also make us confident to take informed decisions in the markets. I would appreciate your views on the above sharing, Thanks for support, Regards, Neetesh Jain
NSE:BANKNIFTYEducation
by NeeteshJain
29